What Is Car Insurance Excess
Jul 28, 2009 More Saving
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The car insurance excess is the agreed upon amount your insurance company requires you to pay for any repairs that are being made to your vehicle due to a claim being filed.
Your insurance company will determine what your excess payment will be when you start your policy. The excess payments in most cases will be made directly to the garage or mechanic that is repairing the vehicle, the insurance will send the remaining amount due directly to them or send a check to you that you will need to bring to the garage.
Anytime you file a claim that involves repairing damage to your vehicle another motorists caused you can have the excess amount reimbursed to you or the insurance company will just deduct it from the amount of your settlement.
There are millions of motorists on the road that do not have insurance coverage or the policy they carry is not sufficient to meet the demands of the claim you file. It is illegal to operating a moving vehicle without insurance but it is not a crime to be underinsured as long as it meets the state requirements. If you are involved in an accident with a motorist who is either underinsured and uninsured your insurer may cover the costs if you have chosen that protection but you will still be required to pay the excess amount for any repairs.
There are over 5% of drivers on the streets in the UK who are uninsured. The insurance companies provide protection but due to the fact they are at risk for paying for other drivers mishaps the insurance premiums continue to rise.
A compulsory excess is the smallest excess amount that your insurer will accept on your policy. This amount will be different for each basing information on your driving record, the car you own, age and the length of time you have been legally driving. A clean driving record and several years experience driving could have you paying as little as $50 in excess payments but if you are a beginning driver you could be paying as much as $500 or $1000 in excess payments.
You can choose to pay a voluntary excess to help lower your premium payments. If you have a very low excess quoted to you it can be increased and this will lower your policy price. You have to be careful when increasing your excess amount as you should be able to afford the amount if the need arises. You do want to lower your premium though so increasing it to what you can afford comfortably should give a good balance.
You should understand that if you have your car in the garage being repaired for an insurance claim that the garage will not release the vehicle to you until full payment is received. The insurance company will pay the amount they are required but the final payment will generally be your excess amount. This is where it comes important to know that you can afford the excess amount you have agreed to when the time comes that you need to have it ready.
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